Blown billions, Part I

Banks in the Gulf and beyond are reeling from Saudi Arabia’s Saad and al-Gosaibi scandal. We look at the web of relationships behind a dispute that will change the way business is done in the region, reports Trend magazine. Part I

Replying to these allegations, a spokesman for al-Sanea said: “Although Mr. al-Sanea was at one time named as a

managing director of Ahmad Hamad Algosaibi & Brothers Co. (AHAB), he has not acted in such a capacity for many years, is not involved in the operations of AHAB in any way, nor is he chairman of The International Banking Corporation.”

The spokesman added: “Although Mr. al-Sanea has long had personal relations with the partners of AHAB, neither Maan al-Sanea nor any related business entity is a partner or has any ownership interest whatsoever in AHAB or in any of its related entities, nor do they have any business ties except on an arms-length commercial basis. Likewise, AHAB has no interest in Saad Group company or in any business owned or controlled by Maan al-Sanea.”

Interesting synopsis of a developing story. Note that Al Sanea (his mother is related to Kuwait’s ruling Al-Sabah clan) did not work for AHAB until he married Sana, at which time he was effectively given management control of the AHAB owned Money Exchange – akin to a dowry of sorts. Sana and her husband were considered heirs to the business model that her father had built . It was Ahmad, the oldest of the Al Gosaibi brothers, who built the trading operations and laid the industrial foundation, but Abdulaziz who used it as collateral to leverage the family into the billion dollar league.

Cousins Yousef and Saud (Sana’s younger brother) are managing AHAB’s operations but it is likely that they may not be the market makers their respective fathers were. That Saud may have been jealous of his brother-in-law is possible, but outright incompetence in management – well the owners are to wholly be blamed for that.